Geithner To Assure China U.S. Will Control Deficits (Bull Shit)

Treasury Secretary Timothy Geithner arrived in Beijing with a pledge that the Obama administration will control its borrowing as he sought to reassure China its holdings of U.S. government debt are safe.

“No one is going to be more concerned about future deficits than we are,” Geithner told reporters on the way to two days of meetings that start today in China’s capital.

Geithner will meet with Premier Wen Jiabao, who in March called for the U.S. to “guarantee the safety of China’s assets.” China is the largest foreign holder of U.S. government debt, which so far this year has handed investors the worst loss since at least 1977 on forecasts for ballooning federal budget deficits.

“I hope Geithner’s visit can soothe our nerves,” said Yu Yongding, a senior researcher at the government-backed Chinese Academy of Social Sciences and a former central bank adviser. “The Chinese public is worried about the safety of its foreign- exchange reserves,” Yu said in an e-mail.

Investor concern about a record American budget deficit helped send yields on the benchmark 10-year Treasury note to 3.74 percent on May 27, the highest level since mid-November. The 10-year note yield ended last week at 3.46 percent, little changed from a week earlier.

China held about $768 billion of Treasuries as of March, according to U.S. government data.

http://www.bloomberg.com/apps/news?pid=20601087&sid=afg8MXnVGSGo&refer=worldwide

Geithner To Assure China U.S. Will Control Deficits (Bull Shit)

Geithner To Assure China U.S. Will Control Deficits (Bull Shit)

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